The sun. [volume] (Morris, Stevens County, Minn.) 1882-1895, 1887-12-08
PRESIDENTS MESSAGE.
President Cleveland's Annual Essay
to Congress Happily and Unex-
Uectedly Brief.
No Topic Is Discussed Aside from the
Question of the
Tariff.
Reduction of the Treasury Surplus
Urged with All the Force of
Earnest Argument.
The Removal or Material uessening
of the Duty on Wool Is Recon-
mended.
Congress Referred to the Department
Reports for an Account of Gov
eminent Operations.
PRESENTED BY GROVER.

are confronted at fhe threshold or your leg
isiative duties with a condition of the ma
tional finances which imperatively demands
immediate ana careful consideration. The
amount of money annually eXacted, through
the operation OF present laws, from the in
dustries and necessities of the people largely
exceeds the sum necessary to meet the ex-
penses of the government When we con-
slider that the theory of our institutions
guarantee to every citizen the full enjoy
meut of all the fruits of his industry and en-
terprlse, with only such deduction as may
be his share towards the careful and ecorom-
cal maintenance of the government which
protects him. it is plain that the exaction of
more than this is indefensibe extortion and
4 culpable betrayal of American fairness and
justice. This wrong inflicted upon those
who bear the burden of national taxation,
like other wrongs multiplies brood of evil
consequences The public treasury, which
should only exist as conduit con-
yeying the peoples tribute to its le-
gjtimate objects OF expenditure, be-
comes a boarding place for money need
lessly withdrawn from trade and the peo-
pies use, thus Gripping our national ener-
gies, suspending our country's develop
ment, preventing investment in productive
enterprise, threatening financial disturb
ance and inviting schemes of public plumber
This condition of our treasury is not al to-
getLer new: and it has more than once OF
late been submitted 70 the peoples repre-
sentatiyes in the congress, who alone can
apply remedy. And vet the situation still
continues, with aggravated incidents, more
than ever preSaging financial CONFUSION
and widespread disaster. 1t will not do to
neglect this situation because its dangers are
not now palpably imminent and apparent
They exist none the less certainly, and await
the unforeseen and unexpected occasion,
when suddenly they Will be preclpitated
upon Ms. On June 80, 1885, the excess of
revenues over public expenditures after
complying with the annual requirement of
the sinking fund act, was ST. ,735 81;
during the year ended June so, 1856, such
excess amounted to $40, 4O5, o45. 20; and
during the year ended June 80, 1887. it
reached 500, 567, $40. 80. The annual con-
tributlons to
The SINKING FUND
during the three years above specified,
amounting in the aggregate to $13S,-
05S, 500 "a, and deducted from the
surplus as stated, were made by
calling in for that purpose out
standing 3 per cent bonds of the govern
ment During the six months prior to June
large by repeated accumulations and it was
feared the withdrawal Of this great sum of
money needed by the people would so affect
the business OF the country, that S79, S64,-
100 of such surplus was applied to the pay
ment of the principal and interest of the 5
per cent bonds still outstanding, and which
were then payable at the option of the gov
ernment The precarious condition of
financial affairs among the people still need
ing relief, Immediately after June 80 1887
no irip If 10 z
/ outstanding, amounting with principal and
interest TO $1S.S77, 800, was called in and
applied to the sinking fund contribution for
the current fiscal year Notwithstanding
| these operations of the treasury department.,
! representations of distress in business cir
! ces not only continued but increased, and
! absolute peril seemed at hand In these cir
cumstances the contribution to the sinking
! fund for the current fiscal year was at once
! completed by the expenditure of S27, 6S4-
/ 2S3. 90 in the purchase of government bonds
| not yet due bearing 4 and 4 u per cent inter
! est the premium paid thereon averaging
about "a per cent for the former and 8
| per cent for the latter In addition
| TO this the interest accruing during
the current year upon the outstanding bond
! ed Indebtedness of the government was to
some extent anticipated, and banks selected
as repositories of public money were per-
| nitted to somewhat increase their deposits
! While the eXpedients thus employed to re-
! lease to the people the money lying idle in
the treasury served to avert immediate dan
! ger, our surplus revenues have continued to
| accumulate, the excess for the present wear
amounting on Dec l to 800. 25S. 7O1. 10,
and estimated to reach BIB 900 600 on
June so next, at which date it is expected
| that this sum, added to prior Accommodations,
will swell the surplus in the treasury to
/ $40, 100000. There seems to be no assur-
| ance that. with such g withdrawal from use
OF the peoples circulating medium our
business community may not in the near fu-
ture be subjected to the same distress which
was quite lately produced from the same
cause And while the functions of our ma
| tlonal treasury should be few and simple
and while its best condition would be
reached, [ believe, by its entire d1sconnec-
| ton with private business interests, vet
when by perversion OF its purposes, it idly
holds
| MONEY UsELESSLY sUBTRACTED
from the channels of trade, there seems to
be reason for the claim that some legitimate
means should be devised by the
gency, without waste or extravagance,
such money to its place among the people.
If such an emergency arises there now ex-
lists nc clear and undoubted executive power
of relief. Heretofore the redemption of
per cent bonds, which were payable at the
option of the government, has afforded
means for the disbursement of the excess of
our revenues; but these bonds have all been
retired, and there are no bonds outstanding
the payment of which we have the right to
| insist upon. The contribution to the sinking
fund which furnishes The occasion for ex-
penditure in the purchase of bonds has
already been made for the current year, SO
that there is no outlet In that direction. In
the present state of legislation the only pre-
tense of any existing legislative power to
restore, at this time, any part of our surplus
revenues to the people by its expenditure
consists in the supposition that the secretary
of tie treasury may enter the market anu
| purchase the bonds OF the government not
yet due at rate of premium to be agreed
upon. The only provision of law from W hich
such power could be derived is found in an
appropriation bill passed number Of years
ago; and it is subject to the suspicion
that it was intended az temporary and
limited in its application, instead of con-
ferring q continued discretion and author
ity. No condition ought to exist which
would justify the grant of power to a single
official, upon his Judgment of its necessity,
to withhold from or release to the business
of the people, in an unusual manner, money
held in the treasury, and thus affect, at his
VIII the financial situation of the country
and if it is deemed wise to lodge in the Sec
rotary of the treasury the authority in the
present juncture to purchase bonds, it
should be plainly vested an / provided as far
as possible with such checks and limitations
as will define this officials right and discre-
ton, and at the same time relieve him from
unQue responsibility. In considering inc
question of purchasing bonds as a means of
restoring to circulation the surplus money
accommodating in the treasury. it should be
borne in mind that premiums must of course
be paid upon such purchase, that there may
be large part of these bonds held as invest
ments which cannot be purchased at any
price, and that combinations among holders
who are willing to self, may unreasonably
enhance the cost of such bonds to the gov
eminent 1t has been suggested that
| THE PRESENT BONDED DEBT
might be refunded at a less rate of interest
and the difference between the old and new
security paid in cash, thus finding use for
the surplus in the treasury. The success of
this plan, it is apparent must depend upon
the volition of the holders of the present
bonds; and it is not entirely certain that the
ipducement which must be offered them